Which of the following explains why the quantity of a good demanded decreases when its price increases?
A) Consumer preferences change when the price of a good changes.
B) The nominal income of consumers falls when the price of a good increases.
C) Substitutes become relatively cheaper when the price of a good increases.
D) Complements become relatively cheaper when the price of a good increases.
E) None of the above provides a reasonable explanation.
Correct Answer:
Verified
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